SRINAGAR : Reserve Bank Governor Raghuram Rajan today said there was no reason for RBI to manage public debt and he would be happy if the debt management function goes to the Government.
“…I don’t see any reason why RBI should continue doing the PDMA (Public Debt Management Agency) functions. I am happy to let it go to the Government,” he said.
The RBI Governor was replying to questions from students of Kashmir University’s Business School here.
Following the controversy over setting up of the PDMA and shifting of regulation of G-Secs from RBI to Sebi, the Government withdrew the proposal from the Finance Bill and decided to draw a roadmap for transfer of debt management function from RBI to an independent agency.
While the Reserve Bank of India (RBI) would keep its regulatory powers for now, a road map would be prepared over the next one year for a unified financial regulator, with regulatory powers on G-secs, currency and derivatives likely going to the Securities and Exchange Board of India (Sebi).
Rajan said that there was full understanding between him and the Finance Minister Arun Jaitley on setting up of the PDMA.
“Finance Minister and I have a full understanding on these issues… PDMA will fully move over time and we are fully supportive of that,” he said. (AGENCIES)
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